TRAFFIC PATTERNS

STACKING UP

Friedman Billings Ramsey research compares strip center REITs by the average demographics surrounding existing properties. Federal Realty leads the pack in highest average incomes, but its properties also sit in the markets with the lowest population growth potential.

STRIP CENTER REIT DEMOGRAPHICS

Company

Aggregate Household Income ($M)

Average Household Income ($)

Population

5-Year Estimated Population Growth

Federal Realty

4,815

96,200

132,808

2.60%

Regency Centers

3,010

89,583

91,041

8.8

Saul Centers

2,972

85,526

90,778

10.7

Pan Pacific Retail

2,674

68,957

116,531

7.5

Inland Retail

2,485

83,864

81,317

5.8

Weingarten Realty

2,477

66,151

98,072

6.5

Acadia Realty Trust

2,442

79,864

83,437

2.6

Kimco Realty Group

2,357

67,605

93,600

3.8

Equity One

2,165

73,332

77,506

8.7

Developers Diversified Realty

1,992

69,882

70,741

4.6

New Plan Excel Realty Trust

1,947

68,221

75,678

4.6

Cedar Shopping Centers

1,923

61,889

86,083

2.8

Heritage Property

1,922

70,501

68,848

3.7

Ramco-Gernshenson

1,908

73,988

66,645

5.9

Kite Realty

1,610

82,452

53,429

11.4

Group Average

2,447

75,844

85,768

6

Sources: Claritas, SNL, Company reports, Friedman Billings Ramsey

OFFICE SPACE

Staples leads the sector with 576 stores, nearly one-third of which are located in the New York and Los Angeles markets. Office Depot, however, has a greater percentage of locations in the top 25 metropolitan areas, according to Morgan Stanley research.

OFFICE SUPPLIES MARKET

MSA

White Collar Employment

Employment Growth (5-year CAGR, %)

Staples

Number of Stores Office Depot

Office Max

New York (N.Y., N.J. ,Conn.)

5,825,973

-0.1

126

19

22

Los Angeles-Long Beach-Santa Ana, Calif.

3,698,955

0.2

69

57

21

Chicago-Naperville-Joliet (Ill., Ind., Wisc.)

2,989,907

-0.5

22

45

49

Washington-Arlington-Alexandria (DC, Va., Md., W.Va.)

2,013,560

2.0

41

26

0

Philadelphia-Camden-Wilmington (Pa., N.J., Del., Md.)

1,885,361

0.2

49

15

14

Dallas-Fort Worth-Arlington, Tex.

1,765,061

0.0

21

39

23

Boston-Cambridge-Quincy (Mass.,N.H.)

1,750,136

-0.9

48

4

11

Miami-Ft. Lauderdale-Miami-Beach, Fla.

1,709,620

1.8

5

42

22

Houston-Baytown-Sugarland, Tex.

1,610,063

0.8

0

34

19

San Francisco-Oakland-Fremont, Calif.

1,527,267

-1.4

16

19

12

Atlanta-Sandy Springs-Marietta, Ga.

1,400,575

0.4

22

34

22

Detroit-Warren-Livonia, Mich.

1,379,185

-1.5

17

13

19

Minneapolis-St. Paul-Bloomington (Minn., Wisc.)

1,184,897

N/A

0

9

23

Phoenix-Mesa-Scottsdale, Ariz.

958,192

2.5

23

0

24

Seattle-Tacoma-Bellevue, Wash.

953,151

-0.1

14

20

12

San Diego-Carlsbad-San Marcos, Calif.

893,629

1.4

18

18

0

St. Louis (Mo., Ill.)

878,679

N/A

0

13

16

Baltimore-Towson, Md.

828,422

0.5

17

12

0

Denver-Aurora, Colo.

781,066

-0.4

0

19

15

Tampa-St. Petersburg-Clearwater, Fla.

776,940

1.7

14

17

0

Pittsburgh, Pa.

766,661

-0.2

12

5

8

Cleveland-Elyria-Mentor, Ohio

732,673

-1.2

7

0

16

Riverside-San Bernardino-Ontario, Calif.

656,815

4.3

22

13

7

Kansas City (Mo.-Kan.)

646,416

0.5

0

9

12

Cincinnati-Middleton (Ohio-Ken.-Ind.)

640,025

0.3

13

7

4

TOTAL

38,253,229

576

489

371

% of Stores in Top 25

46%

48%

40%

% of Stores in Top 25 with Positive Employment Growth

25%

32%

18%

% of Stores in Top 25 with Employment Growth > 1%

10%

11%

6%

Source: Company data, Trade Dimensions, U.S. Department of Labor, Morgan Stanley Research